ELIAS MOTSOALEDI LOCAL MUNICIPALITY
ELIAS MOTSOALEDI LOCAL MUNICIPALITY
2008 / 2009
MEDIUM REVENUE AND EXPENDITURE FRAMEWORK
(MTREF)
BUDGET DOCUMENT
(For community participation)
31 MARCH 2008
1. Table of Contents
|No. |Section Description |Page No. |
|1 |Table of Contents |1 |
|2 |Mayoral Budget Speech |2 |
|3 |Budget Related Resolutions |3 |
| |The Budget | |
|4 |Executive Summary |4-6 |
|5 |Budget Schedules (operating and capital) |7-11 |
|6 |Budget Related Charts and Explanatory Notes | |
| | |12-17 |
|7 |Budget Process Overview (including consultation process and outcomes) | |
| | |18-21 |
|8 |Alignment of Budget with Integrated Development Plan | |
| | |22-24 |
|9 |Budget Related Policies Overview and Amendments | |
| | |25 |
|10 |Fiscal overview and sources of funding (Tariff overview) | |
| | |26-32 |
|11 |Disclosure on Salaries, Allowances and Benefits | |
| | |33 |
|12 |Monthly cash flows by source |34 |
|13 |Measurable performance objectives per vote |35-83 |
|14 |Disclosure on Implementation of MFMA & other legislation |84 |
|15 |Summary of detailed capital plan |85-88 |
|16 |Budgeted financial statements |89 |
2. MAYORAL BUDGET SPEECH 2007/2008: L.M. SELOANE
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MAYOR. L.M SELOANE & SPEAKER. A.B MAHLANGU
(Ready to present the Mayoral Speech)
The purpose of the Mayoral budget speech is to provide a high – level summary of the budget that draws on the executive summary and highlights key deliverables during the coming years. Each Municipality will differ on the focal areas however certain fundamental issues such as the eradication of backlogs, commencement of new projects and programmes would be addressed in this section. Kindly refer to the points list in section 4.1 dealing with the executive summary for further elaboration.
It is critical that the Mayoral speech refers to medium term objectives and the associated medium term financial implications. Planning and budgeting over the medium term is a key component of the financial management reforms. It has been noted that while many Municipalities include multi-year budget figures in supporting documents, the summaries that are most often published and read by the community only cover a single year.
Another key component of the reforms is for Municipalities to move away from measuring resource inputs only and measure service delivery outputs as well. As Municipalities develop measurable performance objectives they will need to ensure these are highlighted in published and widely distributed documents such as the Mayoral speech.
3. BUDGET RELATED RESOLUTIONS
1. Council resolves that the draft annual budget of the Municipality for the financial year 2008/2009 and indicative for the two projected outer years 2009/10 and 2010/11 be approved as set-out in the following schedules:
1.1 Operating revenue by source reflected in schedule 1(Page 7);
1.2 Operating expenditure by vote reflected in schedule 2(Page 8,9);
1.3 Council resolves that multi-year capital appropriations by vote
and associate funding reflected in schedules 3, and 4 be
approved. (Page 10-11)
2. Council resolves that draft property rates reflected on page 27 are imposed for the budget year 2008/09 for public participation.
3. Council resolves that the following draft tariffs and charges reflected are approved for the budget year 2008/09 for public participation.
Electricity (page 28)
Water (page 29)
Refuse removal (page 29)
Sewerage (page 29)
Basic charges (page 30)
Sundry tariffs (pages 30 & 32)
4. Council resolves that the draft measurable performance objectives for each vote (department) as reflected on pages 35 to 83 are approved for the budget year 2008/09.
5. Council resolves to adopt the amended draft Integrated Development Plan reflected in Annexure A.
6. Council notes that no amendments to the approved draft budget related policies are proposed for the budget year 2008/09.
7. Council notes the draft SDBIP reflected in Page 35 to 83 tabled with the draft budget for subsequent approval by the Mayor.
4. EXECUTIVE SUMMARY
The Elias Motsoaledi Municipal area is largely inhabited by those caught within the second economy. Access to basic services like water and sanitation is concentrated around semi-urban areas while rural and farm areas are still lagging behind in this
The past financial year have served as a foundation for transforming the municipal administration and progression towards achieving our strategic objectives. They represented teething stages of our growth. This reflected our struggle to merely comply with legislative requirements to being a strategic, developmental local government.
The municipal political leadership and senior managers held two a day strategic planning workshop in March 2008. The strategic planning workshop endeavored to outline key strategic objectives aimed at fulfilling the requirements of a developmental local government. The information gathered during the strategic planning session confirmed a number of mayoral priorities, strategic objective and was aligned to overall government programmed of action.
The Council has ensured that the budget reflects the strategic outcomes embodied in the IDP and related strategic policies. The strategic alignment between National, Provincial and District priorities was also a central factor during the IDP review and budget process.
The Council has ensured that the budget reflects the strategic outcomes embodied in the IDP and related strategic policies. The strategic alignment between National, Provincial and District priorities was also a central factor during the IDP review and budget process.
|LIMPOPO PGDS |ELIAS MOTSOALEDI IDP KEY FOCUS AREAS |
|Economic Development |Good Governance |
|Infrastructure Development |Financial Viability |
|Social Infrastructure |Infrastructure Development and Service Delivery |
|Environmental Development |Economic Development and Job Creation |
|Good Governance | |
The Municipality has also aligned the SDBIP to the budget processes by giving clear information to the ward Councillors that serves as a direct link between the Council and Public. The SDBIP provides the basis for measuring performance in service delivery against end of the year targets and implementing the budget. In addition, the SDBIP will create a line of accountability from senior management to all performance measures, indicators and targets. The SDBIP explicitly defines lines of accountability and responsibility. The quarterly targets envisaged in the SDBIP will be cascaded to individual managers directly accountable to the Section 57 employees and will form the basis of the quarterly performance coaching sessions.
In terms of free and subsidised services, the municipality is aggressively pursuing the registration of indigents and the majority of households in the municipal supplied area, receiving 50 kw of electricity and 6 kilolitres of water per month free of charge. In Eskom supplied areas, households registered as indigents, receive tokens to access their free electricity on a monthly basis. Regarding water, the municipality makes provision for boreholes and water tankers in non-matured areas.
The National treasury guideline growth parameters are consistent with the CPIX target range over the medium term and for the 2007/2008 municipal financial year, 3 to 6 percent. The municipality has succeeded in most of the services to maintain the tariff increase with the growth limits set by the National Treasury in line with the inflation target bond of the Reserve Bank. The average tariff increases and reflects in the table below for stands with valuation.
|SERVICE |% TARIFF INCREASE |
|Property Rates |5,0 % |
|Electricity |Average of 6,0 % |
|Sanitation |5,8 % |
|Refuse |5,6 % |
The municipality will continue to levy a basic charge for services for stands without valuation. The basic charge for residential properties increases with 5,5 % from R18, 45 to R 19, 46 and for commercial with 5,5 % from R36,91 to R.38,94.
The municipality is still relying on government grants and subsidies as a major source of revenue at approximately 58 % and will as part of its financial strategy and viability explore various mechanisms, including legalising the newly finalised valuation roll plus the valuation of all areas in line with the property rates, to expand revenue from own sources.
With strong economic development being experienced, such as new property sub-divisions, housing and commercial developments, the overall resource base of the municipality is expected to increase. The annual growth (parameter) on existing revenues, accompanied by aggregate growth in revenues generated from new developments, will later result in higher budget adoption.
A summary of the credible budget, which does not jeopardise the financial viability of the municipality, ensuring that the financial position is maintained within generally accepted prudential limits and that obligations can be met and provides all Directors with appropriate levels of delegation sufficient to meet their financial management responsibilities, and also considers the changes required in the IDP and the SDBIP as follows:
| |2008/9 |2009/10 |2010/11 |
|Operating Revenue |191 597 788 |129 897 472 |129 498 167 |
|Operating Expenditure |109 172 058 |114 807 472 |122 648 167 |
|Capital Expenditure |82 425 730 |15 090 000 |6 850 000 |
The speaker is first and foremost responsible for the administration of the administration of supporting councillors in the exercise of their duties. The municipality
has allocated R652 500.00 (SDM) plus R243 000.00 for ward committee allowances. The fact that the ward councillors are the institutional link between the ward committee and the council is both a challenge and an opportunity. The opportunity lies in the fact that the concerns and aspirations of the ward can find resonance in the affairs of the council through the good offices of the ward councilors. We have allocated money for the programmes that can be developed for all ward committees. We have also allocated funds for junior council, gender, woman and study tours in the speaker’s office.
The Mayor, as political head of the municipality, oversees the management of the administration and represents local government to the public. The municipality has allocated funds for the Mayor to establish the bursary fund, traditional leaders and the aged and mayoral outreach programmes. We have also allocated funds for the mainstreaming of youth development into Elias Motsoaledi Local Municipality plans and strategies. The chief whip is essentially a political functionary who can meet our political sanctions, determined by the rules of political parties., We have allocated funds for chief whip’s office, communication and youth programmes. The municipality will also be participating in all National and Provincial policy initiatives and programmes aimed at addressing the challenges of HIV/AIDS. It is vital the Elias Motsoaledi Local Municipality should Endeavour to promote the direct involvement of CBO’s, NGO’s, faith base organisatins and other partners in the design, implementation, monitoring and evaluation of its HIV/AIDS programmes and interventions in an integrated and co-ordinated manner.
The IDP budget for 2008/2009 clearly demonstrates our vision and our understanding of the needs of our communities. It also reveals the municipality’s alignment with other spheres of government as depicted in the developmental projects of sector department.
We view the IDP and the Budget as a tool to leverage government and private funding to drive the transformation of our administration and promote hum
“Let’s go and talk to the community about the contents of this budget.”
“Kom ons gaan bespreek die inhoud van hierdie begroting met die gemeenskap.”
“A re belaganeng.”
5. BUDGET SCHEDULES
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|Revenue for prior years (government Grants and subsidies) were reduced with the indirect grants form DWAF and Seckhukune District to ensure a credible budget | | |
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6. Budget related Charts
Chart 1: Revenue by Major Sources
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| |06/07 Aud |07/08 Bud |07/08 Adj |07/08 Est |08/07 Bud |09/10 Proj |10/11 Proj |
|Property rates |6,091 |5,766 |5,766 |5,969 |8,000 |8,480 |8,988 |
|Electricity |13,998 |23,308 |15,308 |16,936 |19,341 |20,502 |21,731 |
|Water |3,831 |3,983 |3,983 |3,983 |5,640 |5,978 |6,336 |
|Other |12,811 |12,811 |13,899 |13,899 |65,391 |22,315 |23,644 |
|Grants & Subsidies |51,013 |77,041 |77,204 |77,204 |73,391 |89,721 |85,952 |
The above shows that own funding is the major source of revenue for the municipality at 37% in 2008/09 compared to the Government grants at 33% in 2008/09 financial year. Government grants was at 51% in 2007/08 financial year. Electricity reduced from 13% in 2007/08 to 9% in 2008/09, Property rates is remained the same at 2% in 2007/08 and 2008/09 of the total revenue budget.
Chart 2: Revenue by Minor Sources
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| |06/07 Aud |07/08 Bud |07/08 Adj |07/08 Est |08/07 Bud |09/10 Proj |10/11 Proj |
|Rental |658 |33 |33 |33 |520 |551 |584 |
|Interest External |3,362 |3,741 |3,741 |3,529 |3,741 |3,965 |4,203 |
|Interest Debtors |390 |413 |413 |413 |438 |464 |501 |
|Fines |2,522 |1,181 |1,181 |1,181 |2,500 |2,650 |2,809 |
|Licenses and Permits |3,521 |12,271 |14,271 |14,271 |20,000 |21,201 |22,473 |
Revenue for Licenses and permits comprise 9% of the total budget, wile sanitation and Refuse Removal comprises 1% each.
Chart 3: Operation Expenditure by Vote
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| |06/07 Aud |07/08 Bud |07/08 Adj |07/08 Est |08/07 Bud |09/10 Proj |10/11 Proj |
|Mayor |1,065 |1,155 |1,153 |748 |1,155 |1,240 |1,332 |
|Speaker |785 |890 |887 |401 |890 |953 |1,021 |
|Municipal Manager |3,124 |2,158 |2,214 |1,396 |2,158 |2,313 |2,480 |
|Finance |7,091 |7,141 |6,478 |3,970 |7,141 |6,976 |7,498 |
|Strategic Management |1,837 |2,202 |2,327 |1,481 |2,202 |2,350 |2,509 |
|Social Services Department |12,234 |21,392 |22,568 |19,032 |21,392 |22,764 |24,260 |
|Infrastructure |29,299 |38,122 |38,211 |19,553 |38,122 |40,526 |43,172 |
|Corporate Services |8,231 |8,111 |8,073 |5,009 |8,111 |8,686 |9,302 |
|Council (General) |9,194 |8,908 |8,953 |5,913 |8,908 |9,610 |10,367 |
Operating expenditure relating to the Social Development (Health, Refuse, Parks, Traffic) is the biggest component at 33,13% in 2008/09 which increased from 23,7% in 2007/08. The Second biggest component is Infrastructure Department (Electricity, Water, Roads, Sewerage) at 32.97% in 2008/09.
Expenditure relating to councillors (Mayor, Speaker, Councillors) follows with R 11,36 million which represents 10,4% of the total Budget
Chart 4: Operation Expenditure by Major Type
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| |06/07 Aud |07/08 Bud |07/08 Adj |07/08 Est |08/07 Bud |09/10 Proj |10/11 Proj |
|Employee Related Cost |29,816 |38,859 |34,299 |22,195 |36,446 |38,633 |40,951 |
|Remuneration of Councillors |9,676 |8,374 |8,374 |5,905 |8,876 |9,409 |9,973 |
|Repairs and Maintenance |2,692 |5,190 |4,598 |3,315 |7,136 |7,564 |8,018 |
|Bulk Purchases – Electricity |11,096 |17,405 |18,300 |10,447 |16,281 |17,258 |18,293 |
|Bulk Purchases – Water |764 |714 |776 |408 |734 |778 |825 |
|Contracted Services |2,188 |2,227 |2,227 |1,752 |2,191 |2,322 |2,462 |
|Communications |611 |1,174 |1,339 |1,251 |1,439 |1,525 |1,617 |
|General Expenses |11,789 |14,160 |18,834 |9,931 |32,871 |33,930 |36,919 |
Employee related costs constitutes 34,39% of the total operating expenditure in 2008/09 a decrease from the 43,1% in 2007/08.
Bulk purchases of electricity amounts to R 10,7 million increases to R 16,2 million due to the increase of Eskom of 14.2% in their tariffs.
Chart 5: Capital Expenditure by Vote
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| |06/07 Aud |07/08 Bud |07/08 Adj |07/08 Est |08/07 Bud |09/10 Proj |10/11 Proj |
|Mayor |0 |0 |0 |0 |3 |0 |0 |
|Speaker |0 |0 |0 |0 |0 |0 |0 |
|Municipal Manager |6,400 |2,710 |2,710 |2,710 |2,120 |30 |30 |
|Finance |700 |3,400 |5,400 |5,400 |3,660 |2,360 |1,000 |
|Strategic Management |200 |8,700 |8,700 |8,700 |400 |60 |60 |
|Social Services Department |3,298 |7,350 |7,550 |7,550 |1,065 |2,350 |2,150 |
|Infrastructure |31,020 |59, 762 |51, 648 |51, 648 |73,478 |9,680 |3,000 |
|Corporate Services |550 |2,780 |2,780 |2,780 |1,700 |610 |610 |
|Council (General) |0 |0 |0 |0 |0 |0 |0 |
Infrastructure receives the biggest portion of the capital budget of R 73,47 million for 2008/09 (89,14% of budget).
Chart 6: Capital Expenditure by Funding
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| |06/07 Aud |07/08 Bud |07/08 Adj |07/08 Est |08/07 Bud |09/10 Proj |10/11 Proj |
|National Government |16,418 |39,119 |39,119 |39,119 |16,797 |17,805 |18,873 |
|Provincial Government |5,900 |2,000 |2,000 |2,000 |2,000 |0 |0 |
|Accumulated Surplus |9,850 |43,582 |37,469 |37,469 |63,628 |13,215 |5,140 |
|External Loans |10,000 |0 |0 |0 |0 |0 |0 |
Major sources of funding is own funding R63.62 million (77,2% of Capital Budget) and National Government funding at R 16,797 million ( 20,38% of Capital Budget). The premiers office will allocate R 2 million for Mathebe Tribal Office.
7. BUDGET PROCESS OVERVIEW
Budget Process Overview
MFMA Circulars 41,42 and 26 provide guidance on the steps in the annual budget process. Critical to the development of a credible budget are: the manner in which the strategic planning process is integrated; the input of policy directions; and consultation with the community and other stakeholders. This section should summarize:
• Political oversight of the budget process
The budget preparation and IDP review process was driven by the IDP and Budget Steering Committee. This committee is chaired by the Mayor and the following persons are members:
o Chairperson: Infrastructure Committee
o Chairperson: Social Development Committee
o Chairperson: Finance
o Chairperson: Corporate Services
o Municipal Manager
o All heads of Departments (Directors)
The Strategic Director on behalf of the municipal Council drives the Budget and IDP Review Process, which entails the coordination of activities, meetings and the development of draft documents within the ambit of the steering Committee.
• Schedule of Key Deadlines relating to budget process [MFMA s 21(1)(b)]
The schedule of key deadlines for the preparation of the budget and the annual review of the IDP for the 2008/2009 medium term period was tabled in council in July 2007 and was approved by council accordingly.
The tabling of time schedule outlining key deadlines for Elias Motsoaledi Local Municipality 10 months before the start of the budget year, indicated the following:
• The preparation, tabling and approval of the Annual Budget;
• Annual Budget review on budget – related policies;
• The tabling and adoption of the reviewed IDP;
• Consultation process with the community.
• Process used to integrate the review of the IDP and preparation of the budget
The IDP and Budget Steering Committee consisting of key political office bearers and senior management ensured that issues relating to the IDP and budget preparation are managed and dealt through an integrated and holistic approach.
All IDP related matters having an impact on resource allocations and the budget in general are therefore handled more appropriately by the Steering Committee.
• Process for tabling of budget and community consultations
The 2008/2009 MTREF budget , the revised IDP and the draft SDBIP will be tabled by the Mayor on the 31st of March 2008 as requested by Section 16 (2) of the Municipal Finance Management Act, 2003.
The following table provides a clear illustration of the types of consultations, stakeholders involved, dates on which the various consultations will take place and the respective venues.
|No |Topic |Date |Time |Venue/office |
|1 |Submission of inputs from all wards |Oct 2007 to Dec 2008 |7h30 to 16h15 |Strategic Director’s Office |
|2 |IDP- budget first draft presented to the |27 February 2008 |10h00 |Committee Room |
| |Steering Committee | | | |
|3 |First IDP- Budget forum to discuss the | April 8 |10h00 |Municipal Chamber |
| |performance of 2006/2007 and make inputs. | | | |
|4 |Second IDP-Budget forum to discuss the |April 2008 |10h00 |Municipal Chamber |
| |consolidation of projects and the | | | |
| |presentation of the second draft. | | | |
|5 |Presentation of the draft IDP- Budget to |31 March 2008 |14h00 |Municipal Chamber |
| |Council for inputs | | | |
|6 |Draft IDP- Budget advertise for inputs |1 April to 2 Mayl 2008 |7h30 |Municipal Satellite Offices & |
| | | | |Media |
|7 |Adoption of 2007/2008 reviewed IDP-Budget |30 May 2008 |12h00 |Municipal Chamber |
Copy of the Tarriffs, Budget and IDP will be advertised in the Website, Local Newspapers (Daller, Community News, Ngulu News, Sekhukhune News) in April 2008.
• Summary of Community Priority Issues (During ward based IDP forum)
During public consultation meetings in Elias Motsoaledi Local Municipality communities raised a number of issues that they considered pertinent for the development of their respective wards and areas. Below is a summary of the most pertinent community issues highlighted throughout the Elias Motsoaledi Municipal Area.
The need for:
|High mast lights and maintenance |Facilitating Scholar Transport for farm learners |
|Electricity |Agricultural land |
|Roads, their maintenance and necessary road signage |Easily accessible pension payment |
|Refuse removal |Water |
|Cemeteries |Housing & completion outstanding ones |
|Upgrading & maintenance of sport facilities |Schools |
|Establishment of CPF’s |Clinics |
|Sanitation Facilities |Post boxes |
|Skills Development Centres |Storm water drainage |
|Poverty Alleviation Projects |Home based Care Centres |
|Community Halls |Multipurpose centres |
|Centres for orphans and HIV/Aids patients |Children Day care Centres |
| |Old Age centres |
| |Ambulances |
| |Libraries |
All the issues highlighted above are indicative of the fact that there is a need for cross-sectoral collaboration with municipalities and provincial and national service providers.
• Strategic alignment with National and Provincial Governments
Limpopo Province Growth and Development Strategy
In terms of Section 24(1) of the Municipal Systems Act “The planning undertaken by a municipality must be aligned with, and complement, the development plans and strategies of other affected municipalities and other organs of state so as to give effect to the principles of co-operative government contained in Section 41 of the Constitution”.
In case of the Elias Motsoaledi Local Municipality the three most important (although not the only) directives in this regard are the Limpopo Growth and Development strategy (PGDS), the
Integrated Development Plan of the Sekhukhune District Municipality, and the International Community Development Targets (Vision 2014).
The PGDS (2004-2014) is the strategic framework for the Limpopo Provincial Government that sets the tone and pace for growth and development in the province. It addressed the key and most fundamental issues of development spanning the social, economic and the political environment and was developed from the following:
• National policies and strategies
• Provincial strategies
• Local Government plans (e.g. Integrated Development Plans) and strategies
The PGDS is considered a strategic document in as far as it ties provincial policies with national policies while it spells out strategies on a sectoral level. Moreover, the PGDS also serves as guideline to provincial departments and local government/ organizations when they lay out their budget allocations in the light of key growth and development priorities at the beginning of each budget cycle.
It is thus essential that the issues and programmes emanating from IDP’ be compatible with the priority areas of the PGDS.
Limpopo province identified several priority areas of intervention as part of the Provincial Growth and Development Strategy, namely:
• Economic Development (i.e. investment, job creation, business and tourism development and SMME development)
• Infrastructure Development (i.e. urban/ rural infrastructure, housing and land reform)
• Human Resource Development (i.e. adequate education opportunities for all)
• Social Infrastructure (i.e. access to full social infrastructure)
• Environmental Development (i.e. protection of the environment and sustainable development)
• Good Governance (i.e. effective and efficient public sector management and service delivery).
Care was taken during the Elias Motsoaledi IDP process that all actions and initiatives proposed by the municipality are in line with these Provincial Priority Areas for Intervention as highlighted above.
8. ALIGNMENT OF BUDGET WITH IDP
This section provides a good understanding of what is contained in the IDP and how that guides the allocations in the budget. The budget documentation provides a good high-level overview of the IDP and reference is being made to the detailed IDP documentation, which is attached as Annexure a.
The following information obtained from the IDP (Annexure A) is included in the budget document for ease of reference.
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|A better life for all through service excellence. |
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|The Elias Motsoaledi Local Municipality is committed to: |
|Provide democratic and accountable government for local communities; |
|Ensure provision of services to communities in a sustainable manner; |
|Promote social and economic development; |
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|We will achieve this by: |
|Implementing a system of Integrated Development Planning based on priority needs of the community identified through community |
|consultation processes; |
|Ensuring the effective performance of all service providers in the municipal area; |
|Supporting sustainable infrastructure development and maintenance, as well as service delivery, through a fair allocation of resources;|
|Promoting a safe and healthy environment; |
|Facilitating economic development and job creation. |
MUNICIPAL KEYFOCUS AREAS AND IDP PRIORITY ISSUES
Based on the above, the following are the key focus areas of the Elias Motsoaledi Local Municipality.
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|Good Governance |
|Financial Viability |
|Community Consultation |
|Infrastructure Development and Service Delivery |
|Economic Development and Job Creation |
Following from these, and informed by inputs provided by the community during consultation processes, as well as an analysis of technical information pertaining to the area, the priority development issues had been identified in the Elias Motsoaledi Municipal Area:
14. DISCLOSURE ON IMPLEMENTATION OF MFMA
This section provides disclosure regarding progress in implementing various related legislation including the MFMA and how this affects the budget and budget process.
The Municipality does not have an MFMA steering committee, however the Municipal Manager (accounting officer) plays a central role in ensuring that the Act is implemented and that all stakeholders comply with the provisions of the MFMA.
The organizational structure has been amended to provide for the post of Chief Financial Officer (previously Financial Director) to head the budget and treasury office. The Chief Financial Officer post will be filled during the current financial year.
In regard to the 2008/09 budget process, the municipality has ensured compliance with all the critical legislative deadlines and content requirements.
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|Issue 1: |Powers, Duties and Functions |Issue 10: |Culture, Sport and Recreation |
|Issue 2: |Organisational Restructuring and Transformation|Issue 11: |Safety and Security |
|Issue 3: |Financial Management |Issue 12: |Emergency Services |
|Issue 4: |Good Governance and Communication |Issue 13: |Post and Telecommunication |
| |Spatial Restructuring and Land Use Management |Issue 14: |Cemeteries |
|Issue 5: |Land Reform and Land Administration |Issue 15: |Water and Sanitation |
| |Housing |Issue 16: |Electricity Supply |
|Issue 6: |Health and Welfare |Issue 17: |Roads, Stormwater and Transportation |
|Issue 7: |Education |Issue 18: |Waste Management |
|Issue 8: | |Issue 19: |Environmental Management |
|Issue 9: | |Issue 20: |Economic Development and Job Creation |
9. BUDGET RELATED POLICIES: OVERVIEW AND AMENDMENTS
This section should provide a broad overview of the budget policy framework and highlight the amended policies to be approved by Council resolution. Due to the fact that no amendments are proposed to the existing policies approved by Council no further details are included in this section.
The following table indicates the name of the existing budget related policies and the date on which it was formally approved by Council.
|Policy |Date of Council Resolution |
|Credit control and debt collection policy | |
|Indigent policy | |
|Supply Chain Management Policy | |
10. FISCAL OVERVIEW AND SOURCE OF FUNDING (Tariffs)
EMLM raises almost 90% of its revenue from Groblersdal and Roossenekal areas. Revenue generated from other areas contributes less than 10% of the total revenue. Inability to raise sufficient revenues from other areas is due to high levels of unemployment. This situation has forced the municipality to seriously rely on grants and subsidies from National Government in terms of the Equitable Share and the recently introduced Municipal Infrastructure Grant (MIG) to fund both operating and capital expenditure requirements.
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The government grants constitute R73,391 million in the 2008/2009 financial year. Government grants are expected to fund almost 33% of the total budget (see chart above).
Tariff Overview
A review of the financial performance of the municipality shows that there has been an decreased reliance on grants from National Government in terms of the Equitable Share and the recently introduced Municipal Infrastructure Grant (MIG) to fund both operating and capital expenditure requirements. Government grants increased with 215,9% from R24,5 million in 2004/05 to R77,4 million in 2008/09. For the 2008/09 medium term government grants will fund 45,08% of the total budget of the municipality and own revenue will account for the remaining funding requirements, as illustrated in the chart below.
The municipality has succeeded in most of the services to maintain tariff increases with the growth limits set by National Treasury in line with the inflation target band of the Reserve Bank of between 3 and 6 per cent. The average tariff increases are reflected below. It should be noted that the electricity increase was forced by the increase announced by Eskom.
|Service |% Tariff increase |
|Property rates |6.1% |
|Electricity |14,5% |
|Water |6,0% |
|Sanitation |5.4% |
|Refuse removal |5.3% |
|Rates |6.1% |
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|Disclosure on Salaries, Allowances and Benefits |
|(To be rectified as soon as Remuneration committee proposals are approved) |
| | | | | | |
|DISCOLSURE OF SALARIES, ALLOWANCES & BENEFITS |Salary |Social Contribution|Allowances |Performance Bonuses|Total Packages |
| |R (' 000) pa |R (' 000) pa |R (' 000) pa |R (' 000) pa |R (' 000) pa |
|Councillors | | | | | |
| | | | | | |
|List of political offfice bearers by designation| | | | | |
|- Mayor | 272,670 | 60,286 | 110,986 | - | 443,942 |
|- Speaker | 199,297 | 47,338 | 82,212 | - | 328,846 |
|- Member of Executive Committee | 201,917 | 25,326 | 83,239 | - | 310,482 |
|Chief Whip | | | | - | - |
| | | | | | |
|Provide a total of all other councillors | | | | | |
| | | | | | |
|Officials of the Municipality | | | | | |
| | | | | | |
|Municipal Manager (MM) | 466,065 | 143,935 | 90,000 | 105,000 | 805,000 |
| | | | | | |
|Chief Financial Officer | 428,088 | 94,912 | 77,000 | 90,000 | 690,000 |
| | | | | | |
|List of senior Manager reporting to MM by | | | | | |
|designation | | | | | |
|- Director Social Services | 412,084 | 1,316 | 76,600 | 73,500 | 563,500 |
|- Director Infrastructure | 412,084 | 1,316 | 76,600 | 73,500 | 563,500 |
|- Director Planning & LED | 412,084 | 1,316 | 76,600 | 73,500 | 563,500 |
|- Director Corporate Services | 412,084 | 1,316 | 76,600 | 73,500 | 563,500 |
|- Manager directly accountable to MM | | | | | |
|(Roossenekal) | | | | | |
| | | | | | |
|List each official with packages >= senior | 3,631,739 | 1,164,991 | 1,531,605 | - | 6,328,335 |
|Manager by Designation | | | | | |
| | | | | | |
|A Heading for each Entity | | | | | |
| | | | | | |
|List each member of board by designation | -| - | | - | - |
| | | |- | | |
| | | | | | |
|Chief Expenditure Officer (CEO) | -| - | | - | - |
| | | |- | | |
| | | | | | |
|List each senior management reporting to CEO by | -| - | | - | - |
|designation | | |- | | |
| | | | | | |
| | | | | | |
|TOTAL COST OF REMUNIRATION TO MUNICIPALITY | 6,848,112 | 1,542,052 | 2,281,441 | 489,000 | 11,160,604 |
12. MONTHLY CASH FLOWS BY SOURCE
TO BE INSERTED AFTER THE APPROVAL
OF THE FINAL BUDGET
13. MEASURABLE PERFORMANCE OBJECTIVES AND SDBIP’S
A MEASURABLE SERVICE DELIVERY AND BUDGET IMPLEMENTATION PLAN (SDBIP)
The Greater Groblersdal Local Municipality’s Integrated Development Planning (IDP) is evolving from a mere wish list articulation into strategic and realistic business-planning processes predicated upon a balanced Performance Management System. Our IDP translates strategy into tangible objectives and measures. The IDP for 2008/09 lays solid foundation to support the development of measurable business or operational plans. It clearly integrates the business planning and budget processes. This level of integration has culminated into the development of the service delivery and budget implementation plan (SDBIP). Our SDBIP will serve as a contractual expression between the administration, council and community of the goals and objectives set by the council as quantifiable outcomes to be implemented by the administration over the next twelve months.
The SDBIP provides the basis for measuring performance in service delivery against end of the year targets and implementing the budget. In addition, the SDBIP will create a line of accountability from senior management to all employees. The SDBIP convert the needs of communities into measurable performance measures, indicators and targets. The SDBIP explicitly defines lines of accountability and responsibility.
The quarterly targets envisaged in the SDBIP will be cascaded to individual managers and will form the basis of the quarterly performance coaching sessions. In addition, quarterly municipal performance reporting will be informed by the SDBIP.
The municipal management
is confident that the current plan
will go a long way in translating
strategy into measurable outputs
and create a result oriented
municipal organization.
1. Municipal Finance Management Act provisions
The Municipal Finance Management Act (MFMA) requires municipalities to develop Service Delivery and Budget Implementation Plans (SDBIP). Whilst the budget gives effect to the strategic direction of the municipality, the SDBIP serves as a contract between the Council, administration and the community containing goals and objective set by the Council as quantifiable outcomes. Thus it is seen as the link between the Mayor, Council and the Administration.
One of the main purposes of the MFMA is to modernise budget and financial management practices by placing Local government finances on a sustainable footing in order to maximise the capacity of municipalities to deliver services to all its residents, customers, users and investors. The Act intends to inculcate a culture of sound financial governance framework, by clarifying and separating the roles and responsibilities of the mayor, executive and non-executive councillors and officials.
The Act promotes accountability in the management of local government by officials. Accountability is promoted through introducing regular and consistent reporting requirements. On the other hand, the SDBIP also facilitates the process of holding management accountable for their performance. The SDBIP provides the basis for measuring performance in the delivery of services.
The challenge facing all role-players is to improve the efficiency and effectiveness of the municipality. The Act promotes the principles of accountability and good governance and also obliges municipalities to be transparent about their budgets and financial affairs. The opportunities and benefits that will occur from the successful implementation of the MFMA guarantee responsiveness and democratic decision-making over financial planning, expenditure and performance of local government. There are key fundamental underlying principles embedded in the legislation.
Section 69(3)(a) requires that the accounting officer must no later than 14 days after the approval of the annual budget submit to the mayor a draft Service Delivery and Budget Implementation Plan (SDBIP) for the budget year.
Section 53(1)(c)(ii) requires that the mayor must take all reasonable steps to ensure that the municipality’s SDBIP is approved within 28 days after the approval of the budget.
The SDBIP gives effect to the IDP and budget of the municipality and will be possible if the IDP and budget are fully aligned with each other, as required by the MFMA as depicted by the figure below.
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2. The concept of the SDBIP
Section 1 of the MFMA defines the “service delivery and budget implementation plan” as a detailed plan approved by the mayor of a municipality in terms of section 53(1)(c)(ii) for implementing the municipality’s delivery of municipal services and its annual budget, and which must include –
a) Projections for each month of-
i. Revenue to be collected by source; and
ii. Operational and capital expenditure by vote;
b) Service delivery targets and performance indicators for each quarter; and
c) Any other matters that may be prescribed and includes any revisions of such plan by the mayor in terms of section 54(1)(c)
Rationale for SDBIP
The budget gives effect to the strategic priorities of the municipality. It therefore serves as a contract between the administration, council and community expressing the goals and objectives set by the council that can be implemented over the next twelve months. The SDBIP is a management, implementation and monitoring tool that will assist the mayor, councillors, municipal manager, senior managers and community.
An SDBIP should ensure that appropriate information is circulated internally and externally for purposes of monitoring the execution of the budget, performance of senior management and achievement of the strategic objectives set by council. It enables the mayor to monitor the performance of the municipal manager, the municipal manager to monitor the performance of senior managers and the community to monitor the performance of the municipality. The SDBIP should therefore determine the performance agreements of the municipal manager and senior managers at the start of each financial year. In essence, the SDBIP focuses government’s attention to:
❑ Quality of spending
❑ Improved service delivery outcomes
❑ Measurable performance objectives
❑ Financial and non-financial indicators
❑ Accurately and timely reporting
❑ Increased accountability
Process plan-Timelines
The SDBIP links each service delivery output to the budget of the municipality, thus providing credible management information and a plan of how the municipality will provide such services and the inputs and financial resources to be used. Being a start-of-year planning and target tool, the SDBIP gives meaning to both in-year reporting in terms of the MFMA section 71 (monthly reporting), Section 72 (mid- year report) and section 121 (end of year annual reports).
The budget gives effect to the strategic priorities of the municipality. It therefore serves as a contract between the administration, council and community expressing the goals and objectives set by the council that can be implemented over the next twelve months. The SDBIP is a management, implementation and monitoring tool that will assist the mayor, councillors, municipal manager, senior managers and community.
3. The departmental SDBIPs of the EMLM for 2008/2009
An SDBIP should ensure that appropriate information is circulated internally and externally for purposes of monitoring the execution of the budget, performance of senior management and achievement of the strategic objectives set by council. It enables the mayor to monitor the performance of the municipal manager, the municipal manager to monitor the performance of senior managers and the community to monitor the performance of the municipality. The SDBIP should therefore determine the performance agreements of the municipal manager and senior managers at the start of each financial year. This clearly makes the SDBIP what links the Performance Management System with the Budget and the IDP. In this regard, EMLM has developed SDBIPs for each department in the municipal organisation:
Office of the Mayor
The Office of the Mayor plays a strategic role in supporting the Mayor to executive his responsibilities. The office of the Mayor is best positioned to facilities and enhances efforts to deep democracy through facilitating a number of public interactions between the Mayor and local communities. The office of the Mayor is also responsible to support the Mayor’s efforts of promoting accountability in the municipal organisation. The office is expected facilitate performance management sessions between the Mayor and Municipal Manager.
The office of the Mayor is expected to provide adequate and strategic support to the Mayor and Executive Committee in order to ensure compliance. Providing the strategic support entails that the office of the Mayor will endeavour to perform a number of functions:
❑ Facilitate community outreach programmes.
❑ Assessment of the municipality’s performance.
❑ Tracking the implementation of Mayor, EXCO and Council decisions.
❑ Facilitate one-on-one between the Mayor and members of the EXCO.
Strategic
Objectives |Budget |Key Performance Indicators |
Baseline |Annual Target |Quarter 1:
30 Sept. 08 |Quarter 2:
31 Dec. 08 |Quarter 3:
30 Mar. 09 |Quarter 4:
30 Jun.09 |Evidence | |To provide adequate to deepening democracy through Mayoral Road shows, Public Meetings, and IGR engagements |
R 50 000.00 |No. Of road shows, public meetings, etc attended by the Mayor | |12 |3 |3 |3 |3 |Report submitted to the Municipal Manager | | |
None. |No. Of IGR meetings attended by the Mayor | |4 |1 |1 |1 |1 |Report submitted to the Municipal Manager | | |
R 20 000.00 |No. Of the State of the Municipality address conducted | |1 | | |1 | |State of the municipality addressed approved by the Mayor | |To develop an effective perception management strategy |
None.
|No. Of press releases issued for requests received | |12 |3 |3 |3 |3 |Newspaper clips submitted to the Municipal Manager | | |
None. |No. Of press conferences held for requests received | |4 |1 |1 |1 |1 |Report submitted to the Municipal Manager | | |
None. |No. Of speeches produced | |8 |2 |2 |2 |2 |Speeches approved by the mayor | |Provide Mayoral support to Traditional leaders, Youth, Disabled and Elderly |
None. |% Creation of a Mayoral Fund |New indicator |100% |100% | | | |Council resolution | | |
None. |Amount of Mayoral Fund money raised from the private sector |New indicator |1,000,000 | |1,000,000 | | |Report submitted to Council | | |
R 30 000.00 |No. Meetings held with traditional leaders | |4 |1 |1 |1 |1 |Quarterly reports approved by the Mayor | | | |No. Of Youth summits held | |1 | | |1 | |Youth Summit report | | |
R 10 000.00 |No. Of Youth benefiting from the Mayoral Bursary | |10 | | | |10 |Council resolution and Registration letters from tertiary institutions | | |
R 70 000.00 |No. Of disability organisations supported by the Mayor | |2 | |1 | |1 |Council resolution | | |
R 30 000.00 |No. Of aged organisations benefiting from the Mayoral Fund | |2 | |1 |1 | |Report submitted Council | |Promote good governance |
None. |No. Of performance coaching sessions held between the Mayor and Municipal Manager | |4 |1 |1 |1 |1 |Coaching notes approved by the Mayor | | |
None. |No. Of meetings held between the Mayor and members of the Executive Committee | |4 |1 |1 |1 |1 |Minutes approved by the Mayor | | |
None. |% Of public complaints that are received by the office of the Mayor resolved by departments |New indicator |100% |100% |100% |100% |100% |Quarterly reports approved by the Mayor | |Ensure effective fiscal discipline through continuous monitoring and reporting |
None. |% Development of a plan to address issues raised by the Auditor General in the management letter |New indicator |100% |100% | | | |AG’s Report | | |
None. |% Implementation of the plan to address in management letter |New indicator |100% | | | |100% |Council resolution | | |
None. |% Contribution to the annual report |100% |100% | |100% | | |Annual Financial Statements submitted to Council | | |
None. |% Compilation of all financial reports, audit and administer monthly claims and expenditure |100% |100% |100% |100% |100% |100% |Compliance reports submitted to Council | |To support the development of an effective and efficient human resource management culture |
None. |% Variance on operating budget | |0% |0% |0% |0% |0% |Audited Financial Statements submitted to Council | | |
None. |% Reduction of overtime costs in the department |New indicator |50% |10% |15% |15% |10% |Overtime cost report submitted to the Municipal Manager | | |
None. |% Update of the asset register wrt GRAP | |100% | | | |100% |Asset register submitted to Municipal Manager | | |
None. |% Of department specific AG’s management letter addressed | |100% | | | |100% |AG’s Report | | |
R 762 000.00 |% Spending on BEE (organisation-wide) |70% |70% | | | |70% |Audited Financial Statements submitted to Council | | |
None. |% Of departmental spending skills development | |100% | | |100% | |Skills Development report submitted to the Municipal Manager | |
Speaker’s office
The strategic priorities that inform the activities in the Speaker’s office are imbedded in Council’s mandate and section 152 of the Constitution of the RSA, 1996. Section 152 mandates local government to:
a) To provide democratic and accountable government for local communities;
b) To ensure the provision of services to communities in a sustainable manner;
c) To promote social and economic development;
d) To promote a safe and healthy environment; and
e) To encourage the involvement of communities and community organisations in the matters of local government.
The local government legislation including the Structures Act and Systems Act obligates municipal Council’s to structures their systems, processes and procedures in a manner that give effect to its role and mandate.
Local government legislation informs and guide guidance to the priorities that drive our operations. These priorities are geared to provide a platform for good governance and effective political structures in Council. They also provide meaning to public and community participation in matters of local government.
The operations in the Speaker’s office are derived not only from the municipality’s establishment notice and the legislative mandate but also from the imperatives of the developmental local government. In this regard, the Speaker’s office supports the speaker in her endeavours to preside over Council in a manner that enables Council to perform its functions. This implies that Council’s resolutions are implemented. In addition, Council is able to hold the executive accountable for its decisions.
Amongst the key focus areas of the Speaker’s office is the coordination of public participation strategy, ward governance system and support the exercise of oversight activities by Council.
Strategic
Objectives |Budget |Key Performance Indicators |
Baseline |Annual Target |Quarter 1:
30 Sept. 08 |Quarter 2:
31 Dec. 08 |Quarter 3:
30 Mar. 09 |Quarter 4:
30 Jun.09 |Evidence | |To provide adequate to deepening democracy through Mayoral Road shows, Public Meetings, and IGR engagements |
260 126
R 20 000.00 |No. Of IDP meeting facilitated by the Speaker | |4 |1 |1 |1 |1 |Report submitted to the Speaker | | |
260 155
R 20 000.00 |No. Of IGR meetings attended by the Speaker | |4 |1 |1 |1 |1 |Report submitted to the Municipal Manager | |To support a functional ward committee system |
260 124
R 100 000.00 |% Review of the ward committee system (including the out-of pocket expenses estimations) |New indicator |100% |100% | | | |Council resolution | | |
260 124
R 100 000.00 |No. Of ward committee meeting held | |11 |3 |3 |3 |2 |Report submitted to the Council | | |
260 124
R 100 000.00 |No. Of ward committees training programmes undertaken | |2 |1 | |1 | |Report submitted to the Council | | |
None. |No. Of ward committee members encouraged to join to CPFs |New indicator |20 |5 |5 |5 |5 |Report approved by the Speaker | |Review the structure and terms of reference for portfolio committees |
R 30 000.00 |No. Of local study tours conducted on portfolio committees |New indicator |2 | |1 |1 | |Council resolution | | |
R 30 000.00 |% Development of a report on alternative governance models |New indicator |100% | |100% | | |Council resolution | |Promote good governance |
None. |No. Of oversight visits conducted | |4 |1 |1 |1 |1 |Council resolution | | |
None. |No. Of compliance reports on the implementation of Council resolution submitted | |4 |1 |1 |1 |1 |Council resolution | | |
260 124
R 100 000.00 |% Development of an integrated programme of ward committees and Cows |New indicator |100% | |100% | | |Report approved by the Speaker | |Promote involvement of young persons in Council |
None. |% Establishment of the Junior Council |New indicator |100% | |100% | | |Council resolution | | |
R 10 000.00 |No. Of Junior Council meetings held |New indicator |2 | |1 | |1 |Meetings of the Junior Council approved by the Speaker | |Support committee projects | |No. Of heritage events held | |2 | | |1 |1 |Council resolution | | |
260 126
R 20 000.00 |N. Of Victim Empowerment workshops held |New indicator |2 | |1 |1 | |Report submitted to the Municipal Manager | |Ensure effective fiscal discipline through continuous monitoring and reporting |
None. |% Development of a plan to address issues raised by the Auditor General in the management letter |New indicator |100% |100% | | | |AG’s Report | | |
None. |% Implementation of the plan to address in management letter |New indicator |100% | | | |100% |Council resolution | | |
MSIG |% Contribution to the annual report |100% |100% | |100% | | |Annual Financial Statements submitted to Council | | |
None. |% Compilation of all financial reports, audit and administer monthly claims and expenditure |100% |100% |100% |100% |100% |100% |Compliance reports submitted to Council | |To support the development of an effective and efficient human resource management culture |
None. |% Variance on operating budget | |0% |0% |0% |0% |0% |Audited Financial Statements submitted to Council | | |
None. |% Reduction of overtime costs in the department |New indicator |50% |10% |15% |15% |10% |Overtime cost report submitted to the Municipal Manager | | |
None. |% Update of the asset register wrt GRAP | |100% | | | |100% |Asset register submitted to Municipal Manager | | |
None. |% Of department specific AG’s management letter addressed | |100% | | | |100% |AG’s Report | | |
R 1 003 364. |% Spending on BEE (organisation-wide) |70% |70% | | | |70% |Audited Financial Statements submitted to Council | | |
None. |% Of departmental spending skills development | |100% | | |100% | |Skills Development report submitted to the Municipal Manager | |
Strategic Management
The IDP and LED department is responsible for leading and coordinating the development of the IDP and guiding the implementing of local economic development interventions. The IDP and LED department is the championing of municipal planning that guides the implementation of the IDP. The department is required to facilitate and stimulate economic growth through:
• Periodic organizational reviews which enable intervention mechanisms.
• Monitoring, evaluation and reporting on organisation performance.
• Conducting performance audit to ensure assurance.
• Exploiting existing economic potential of the municipality.
• Integrated development planning.
• Coordinating intergovernmental relations.
• Ensuring adequate risk management and coverage.
• Providing adequate support the municipal manager.
• Coordinating development planning, urban and rural management interventions.
Strategic
Objectives |Budget |Key Performance Indicators |
Baseline |Annual Target |Quarter 1:
30 Sept. 08 |Quarter 2:
31 Dec. 08 |Quarter 3:
30 Mar. 09 |Quarter 4:
30 Jun.09 |Evidence | |To coordinate strategic reporting and compliance towards performance |
None. |No. Of performance agreements for all senior management concluded |5 |6 |6 | | | |Council resolution | | |
R 150 000.00 |No. Of coaching sessions facilitated on behalf of the MM |4 |4 |1 |1 |1 |1 |Coaching reports submitted to the Municipal Manager | | |
None. |% Implementation of performance improvement initiatives[1] |New indicator |100% |100% |100% |100% |100% |Improvement report submitted to the Municipal Manager | | |
None. |No. Of performance progress reported submitted to Mayor, EXCO and Council |4 |1 |1 |1 |1 |1 |Quarterly progress reports submitted to Mayor, EXCO and Council | | |
R 100 000.00 |No. Of Performance Audit Committee reports submitted |New indicator |4 |1 |1 |1 |1 |Quarterly reports submitted to Municipal Manager and Council | | |
None. |No. Of performance assessment reports submitted to other spheres of government |4 |1 |1 |1 |1 |1 |Receipts from other spheres of government | |To lead the development of a horizontal and vertical Integrated Development Plan (IDP) through a guided business planning process |
260 155
R 50 000.00 |% Coordination of IGR forums[2] |100% |100% |100% |100% |100% |100% |Report submitted to Municipal Manager | | |
R 150 000.00 |% Support to the development of departmental business plans and SDBIPs for 2007/2008 |100% | | |100% | | |Report submitted to Council | | |
R 200 000.00 |% Review the IDP document for 08/09 |100% | | | |100% | |Report submitted to Council | |Provide effective coordination of Internal audit processes |
R 100 000.00 |No. Of Internal Audit Committee reports submitted |New indicator |4 |1 |1 |1 |1 |Quarterly reports submitted to the Municipal Manager and Council | | |
MM
R 600 000.00 |% Development of a municipal wide risk management strategy |New indicator |100% |100% | | | |Council resolution | | |
MM
R 600 000.00 |% Implementation of municipal wide risk management strategy |New indicator |100% |100% |100% |100% |100% |Quarterly reports to Municipal Manager and Council | | |
None. |% Risk and control assessments performed |New indicator |100% |100% |100% |100% |100% |Quarterly reports to Municipal Manager and Council | | |
None. |% Monitoring of mitigating actions |New indicator |100% |100% |100% |100% |100% |Quarterly reports to Municipal Manager and Council | |To initiate interventions promoting LED in line with ASGISA |
R 300 000.00 |% Implementation of the LED strategy |100% | | | | |100% |Council resolution | | |
R 300 000.00 |No. Of SMME’s trained |100 |150 |50 |50 |50 | |Report submitted to the Municipal Manager | | |
None. |No. Of SMME’s linked to established or formal businesses transacting with the municipality | |10 |3 |4 |3 | |Report submitted to the Municipal Manager | | |
None. |Number of jobs created through LED and EPWP |362 |300 |100 |100 |100 | |Council resolution | |Provision of strategic support to the municipal manager |
None. |% Coordination of strategic projects driven from the office of the municipal manager |100% |100% |100% |100% |100% |100% |Report submitted to the Municipal Manager | |Ensure effective fiscal discipline through continuous monitoring and reporting |
None. |% Development of a plan to address issues raised by the Auditor General in the management letter |New indicator |100% |100% | | | |AG’s Report | | |
None. |% Implementation of the plan to address in management letter |New indicator |100% | | | |100% |Council resolution | | |
None. |% Contribution to the annual report |100% |100% | |100% | | |Annual Financial Statements submitted to Council | | |
None. |% Compilation of all financial reports, audit and administer monthly claims and expenditure |100% |100% |100% |100% |100% |100% |Compliance reports submitted to Council | | |
None. |% Submission of annual financial statements before 31 August 2008 |100% | |100% | | | |Annual Financial Statements submitted to Council | |To support the development of sustainable spatial planning framework and land use in the municipality | |% Development of a Spatial Development Plan | |100% | |100% | | |Council resolution | | |
R 200 000.00 |% Audit of all state land in the municipal area | |100% |100% | | | |Council Resolution | | |
R 200 000.00 |% Coordination of all businesses, residential and industrial development issues |100% |100% | | | | |Report submitted to the Municipal manager | |To support the development of an effective and efficient human resource management culture |
None. |% Variance on operating budget | |0% |0% |0% |0% |0% |Audited Financial Statements submitted to Council | | |
None. |% Reduction of overtime costs in the department |New indicator |50% |10% |15% |15% |10% |Overtime cost report submitted to the Municipal Manager | | |
None. |% Update of the asset register wrt GRAP | |100% | | | |100% |Asset register submitted to Municipal Manager | | |
None. |% Of department specific AG’s management letter addressed | |100% | | | |100% |AG’s Report | | |
R 3 513 378. |% Spending on BEE (organisation-wide) |70% |70% | | | |70% |Audited Financial Statements submitted to Council | | |
None. |% Of departmental spending skills development | |100% | | |100% | |Skills Development report submitted to the Municipal Manager | |
Finance
The Finance Department is responsible for the transforming and modernising financial management in the municipality. The department endeavours to create fiscal discipline and leverage effective fiscal management to ensure realistic budget processes and increase municipal revenue in order to improve service delivery. Financial management is a backbone of our transformation processes. In this regard the finance department is positioning itself to play a well defined role that will lead to improved turn-around times in supply chain management processes yet ensure adequate compliance to legislative frameworks.
Finance is responsible for the preparation, implementation and monitoring of the municipality’s operating and capital budgets. The focus is to administer these processes to meet the needs of the community, municipal Council and other municipal department departments. The finance department consist of revenue, expenditure and supply chain sections. We have to comply with Municipal Structures Act, MFMA Property Rates Act, and Municipal Systems Act. Our main functions are:
• Collection and safekeeping of all municipal monies
• Preparation of municipal budget
• Responsible for all procurement through S.C.M
• Managing all municipal expenditure
• Monitoring budget
• Responsible for all stores items and assets
• Delegate by the Municipal Manager to prepare Annual Financial Statements
• Meter reading and billing
Strategic
Objectives |Budget |Key Performance Indicators |
Baseline |Annual Target |Quarter 1:
30 Sept. 08 |Quarter 2:
31 Dec. 08 |Quarter 3:
30 Mar. 09 |Quarter 4:
30 Jun.09 |Evidence | |To ensure effective revenue collection and adequate credit control mechanisms |
R 3 Million |% Increase in revenue collected | |10% |2.5% |2.5% |2.5% |2.5% |AG’s Report | | |
R 70 000.00 |Amount of revenue collected from outstanding debtors | |R1million |250,000 |250,000 |250,000 |250,000 |AG’s Report | | |
R 70 000.00 |% Accurate billing for municipal services | |100% |100% |100% |100% |100% |Audited Financial Statements | | |
R 500 000.00 |% Implementation of the New valuation roll in whole municipal area | |100% | | | |100% |Audited Financial Statements | | |
R 2 Million |% Increase in budget spent on free basic services for indigent communities | |10% |2.5% |2.5% |2.5% |2.5% |Audited Financial Statements | | |
None |% Reduction in the telephone bill | |10% |10% |10% |10% |10% |Audited Financial Statements | |To develop a financial management policy environment commensurate with good governance | |% Implementation of the investment policy and other related policies | |100% |100% |100% |100% |100% |Audited Financial Statements | | | |% Implementation of the Asset Register |New indicator |100% |100% |100% |100% |100% |AG’s Report | | | |% Support rendered to the Audit Committee |New indicator |100% |100% |100% |100% |100% |Report submitted Council | |Prevention of fraud and corruption | |No. Of municipal employees trained in fraud detection and prevention | |100 |40 |30 |30 | |Training report | | | |% Implementation of the anti-fraud and anti-corruption system | |100% |100% |100% |100% |100% |Report submitted Council | |Ensure effective fiscal discipline through continuous monitoring and reporting | |% Development of a plan to address issues raised by the Auditor General in the management letter |New indicator |100% |100% | | | |AG’s Report | | | |% Implementation of the plan to address in management letter |New indicator |100% | | | |100% |Council resolution | | | |% Contribution to the annual report |100% |100% | |100% | | |Annual Financial Statements submitted to Council | | | |% Compilation of all financial reports, audit and administer monthly claims and expenditure |100% |100% |100% |100% |100% |100% |Compliance reports submitted to Council | | | |% Submission of annual financial statements before 31 August 2008 |100% | |100% | | | |Annual Financial Statements submitted to Council | |Ensure effective asset disposal environment | |% Disposal of all obsolete and redundant assets |New indicator |100% |100% |100% |100% |100% |Report submitted Council | |Integration of the budget and the IDP | |% Alignment of the budget and the IDP | |100% |100% |100% |100% |100% |Report submitted to the Municipal Manager | |To support the development of an effective and efficient human resource management culture | |% Variance on operating budget | |0% |0% |0% |0% |0% |Audited Financial Statements submitted to Council | | | |% Reduction of overtime costs in the department |New indicator |50% |10% |15% |15% |10% |Overtime cost report submitted to the Municipal Manager | | | |% Update of the asset register wrt GRAP | |100% | | | |100% |Asset register submitted to Municipal Manager | | | |% Of department specific AG’s management letter addressed | |100% | | | |100% |AG’s Report | | | |% Spending on BEE (organisation-wide) |70% |70% | | | |70% |Audited Financial Statements submitted to Council | | | |% Of departmental spending skills development | |100% | | |100% | |Skills Development report submitted to the Municipal Manager | |
Infrastructure Services
Infrastructure department of Elias Motsoaledi Local Municipality is amongst five departments in the municipality that is rated as one of the core department of the municipality as it deals with basic services needed by the constituencies. The municipalities powers and functions as per the Municipal Structures Act 117 of 1998, the constitution act 108 of 1996 and in terms of Notice No.1 of 2003 published in Gazette No.878 dated 07 March 2003 imposes but not limited to the following responsibility to the Infrastructure Department of the municipality:
1. Infrastructure services planning.
2. Providing and maintaining municipal roads.
3. Provision of Electricity in all municipal licensed areas. (Groblersdal and Roossenekal)
4. Maintenance of Street lights in all EMLM’s jurisdiction area.
5. Provision of Free Basic Electricity.
6. As a Water Service Provider appointed by Water Service Authority to provide water and sanitation services on the appointed areas, which are Groblersdal town, Motetema and Roossenekal town.
7. Building Regulations.
EMLM has been providing all the above services and was then the WSA until March 2003 therefore the WSA function was performed during those previous years until the District Municipality took over and appointed EMLM as a WSA in September 2007.
Strategic
Objectives |Budget |Key Performance Indicators |
Baseline |Annual Target |Quarter 1:
30 Sept. 08 |Quarter 2:
31 Dec. 08 |Quarter 3:
30 Mar. 09 |Quarter 4:
30 Jun.09 |Evidence | |To progressively improve the quality of life of the poorest of the poor | |Percentage of households earning less than
R1100 with access to basic levels of Water
(NKPI)[3] | |TBD |TBD |TBD |TBD |TBD |Council resolution | | | |Percentage of households earning less than
R1100 with access to basic levels of Sanitation
(NKPI) | |TBD |TBD |TBD |TBD |TBD |Council resolution | | | |Percentage of households earning less than
R1100 with access to basic levels of Solid Waste
Removal (NKPI) | |TBD |TBD |TBD |TBD |TBD |Council resolution | | | |Percentage of households earning less than
R1100 with access to basic levels of Electricity
(NKPI) | |TBD |TBD |TBD |TBD |TBD |Council resolution | | | |Percentage of households with access to basic
levels of Sanitation (NKPI | |TBD |TBD |TBD |TBD |TBD |Council resolution | | | |Percentage of households with access to basic
levels of Electricity (NKPI) | |TBD |TBD |TBD |TBD |TBD |Council resolution | | | |Percentage of households with access to basic
levels of Solid Waste Removal (NKPI)
| |TBD |TBD |TBD |TBD |TBD |Council resolution | |To progressively develop and implement strategic policies | |% Implementation of the water SLA and business plans | |100% | | | |100% |Report submitted Council | | | |No. Of weight bridges established | |1 | |1 | | |Report submitted Council | | | |% Development of the Road Master Plan and Pavement Management System | |100% | |100% | | |Road Master Plan and Pavement Management System submitted to Council | | | |% Completion of Integrated
Public Transport Plan | |100% | |100% | | |Integrated
Public Transport Plan submitted to Council | | | |% Development of an Infrastructure Investment Framework | |100% | | |100% | |Infrastructure Investment Framework submitted to Council | | | |% Implementation of the municipal electrification Master Plan |100% (Phase 1) |100% (Phase 2) | | | |100% |Council resolution | | | |% Implementation of all projects under the PMU | |100% | | | |100% |Project Implementation Council resolution | | | |% Development of the RED strategy |New indicator |100% |100% | | | |Report submitted Council | |To improve service delivery | |No. Of municipal areas electrified |3 |3 | |1 |1 |1 |Report submitted Council | | | |No. Of sub-station upgraded | |2 | |1 | |1 |Report submitted Council | | | |No. Of taxi ranks upgraded | |1 | | |1 | |Report submitted Council | | | |% Exploration of alternative energy sources | |100% | | |100% | |Report submitted Council | | | |No. Of km of gravel roads upgraded | |TBD | | | | |Report submitted Council | | | |% Of reported potholes fixed | |100% | | | | |Report submitted Council | | | |% Implementation of the repairs and maintenance plan for electricity and building assets |50% |100% | | | |100% |Report submitted to the Municipal Manager | | | |% Spending on Capex particularly MIG funds |80% |100% | | | |100% |Report submitted Council | | | |% Reduction of illegal electricity and water connections |New indicator |50% |20% |20% |10% | |Report submitted Council | | | |% Reduction of unaccounted for electricity and water |New indicator |5% | | | |5% |Report submitted Council | | | |No. Of random inspections on electricity and water conducted |New indicator |4 |1 |1 |1 |1 |Random inspections report submitted to the Municipal Manager | |Ensure effective fiscal discipline through continuous monitoring and reporting | |% Implementation of the plan to address in management letter |New indicator |100% | | | |100% |Council resolution | | | |% Compilation of all financial reports, audit and administer monthly claims and expenditure |100% |100% |100% |100% |100% |100% |Compliance reports submitted to Council | | | |No. Of performance reports submitted |100% | |100% | | | |Performance reports submitted to Municipal Manager | |To support the development of an effective and efficient human resource management culture | |% Reduction of overtime costs in the department |New indicator |50% |10% |15% |15% |10% |Overtime cost report submitted to the Municipal Manager | | | |% Development of a weekly/monthly work schedule to technical and/or operational teams |New indicator |100% |100% |100% |100% |100% | | | | |% Variance on operating budget | |0% |0% |0% |0% |0% |Audited Financial Statements submitted to Council | | | |% Update of the asset register wrt GRAP | |100% | | | |100% |Asset register submitted to Finance | | | |% Of department specific AG’s management letter addressed | |100% | | | |100% |AG’s Report | | | |% Spending on BEE (organisation-wide) | |70% | | | |70% |Audited Financial Statements submitted to Council | | | |% Of departmental spending skills development | |100% | | |100% | |Skills Development report submitted to the Municipal Manager | |
Corporate Services
The formation of Elias Motsoaledi Local Municipality has ushered in new challenges in terms of administration and support services. The Elias Motsoaledi Local Municipality staffs, from the former TLC and Groblersdal Town Council have “migrated” to positions within the unified administration.
The focus of the administration is developmental local government and more customer-focussed approach of critical importance is the creation of a performance driven organisation. The Corporate Services Department plays an integral role in realising the priorities and strategic outcomes of the Elias Motsoaledi Local Municipality. This department aims to act as the necessary backbone for both political and administrative structures.
This department is responsible for:
• Effective human resources management.
• Personnel training.
• Legal services.
• Information and technology systems.
• Administration.
• Fleet management.
• Record management.
• Council support services and committees.
• Security services.
• Compliance in terms of the OHSA.
• Skills development.
Strategic
Objectives |Budget |Key Performance Indicators |
Baseline |Annual Target |Quarter 1:
30 Sept. 08 |Quarter 2:
31 Dec. 08 |Quarter 3:
30 Mar. 09 |Quarter 4:
30 Jun.09 |Evidence | |To progressively develop and implement strategic policies | |Reduction in sick leave |20% |25% |5% |10% |5% |5% |Report submitted to the Municipal Manager | | | |Reduction of accumulated leave outside cycle |30% |40% |10% |10% |10% |10% |Report submitted to the Municipal Manager | | | |% Availability of departmental staff on any given time |70% |100% |100% |100% |100% |100% |Report submitted to the Municipal Manager | | | |% Of new staff inducted with 14 days of joining the commencing employment with the municipality |100% |100% |100% |100% |100% |100% |Report submitted to the Municipal Manager | | | |% Development of the retention strategy |30% |100% |100% | | | |Report submitted to the Municipal Manager | | | |% Retention of skilled technical employees |50% |100% | | |100% | |Report submitted to the Municipal Manager | | | |% Development and submission of 5-year Employment Equity Plan (EEP) |45% |100% | | |100% | |Council resolution | | | |% Implementation of the Employee Wellness Plan (including the HIV/AIDS in the workplace policy) |New indicator |100% |100% |100% |100% |100% |Council resolution | | | |% Cascading of the Performance Management Policy and System to all non-Section 57 employees | |100% |100% | | | |Council resolution | |To ensure adequate support Council, Executive Committee and provision of legal services | |% Referral of Council generated service delivery queries |100% |100% |100% |100% |100% |100% |Council resolution | | | |% Implementation of personal finance management programmes to targeted employees |100% |100% | |100% | | |Report submitted to the Municipal Manager | |Ensure effective fiscal discipline through continuous monitoring and reporting | |% Implementation of the plan to address in management letter |New indicator |100% | | | |100% |Council resolution | | | |% Compilation of all financial reports, audit and administer monthly claims and expenditure |100% |100% |100% |100% |100% |100% |Compliance reports submitted to Council | | | |No. Of performance reports submitted |100% | |100% | | | |Performance reports submitted to Municipal Manager | |To guide the promotion of adherence to municipality’s by-law | |% Revision and updating of municipal By-Laws. |New indicator |100% | | |100% | |Council resolution | | | |% Implementation of corporate specific municipal By-Laws. |New indicator |100% |100% |100% |100% |100% |Report submitted to the Municipal Manager | |To leverage Information Technology (IT) to improve business process | |% Development of an IT Policy and Plan to support business | |100% |100% | | | |Council resolution | | | |% Implementation of the municipality’s website |20% |100% | |100% | | |Report submitted to Municipal Manager | |To ensure adequate record management regime | |% Development of an electronic record system. |New indicator |100% | |100% | | |Report submitted to the Municipal Manager | |To ensure adequate protection of the municipal assets including building | |% Implementation of a Service Level Agreement with all security service providers. |100% |100% |100% |100% |100% |100% |Report submitted to the Municipal Manager | | | |% Reduction incidents of security breaches including theft of property
|60% |100% |100% |100% |100% |100% |Council resolution | | | |% Reduction of fleet accidents |50% |90% |90% |90% |90% |90% |Fleet management report submitted to the Municipal Manager | | | |% Adherence to servicing and maintenance schedule |100% |100% |100% |100% |100% |100% |Fleet management report submitted to the Municipal Manager | | | |% Reduction of fuel costs |10% |20% |20% |20% |20% |20% |Weekly reconciliation of fuel consumed and kilometres travelled report submitted to the Municipal Manager | |To inculcate the spirit of Batho- Pele and Customer Care | |% Development of performance standards in line with Batho Pele principles |New indicator |100% | |100% | | |Report submitted Council | | | |% Development of a customer care call centre |New indicator |100% | | | |100% |Report submitted Council | | | |No. Customer surveys conducted |New indicator |1 | | |1 | |Council resolution | |Renaming of villages, roads and streets | |No. Of villages, roads and streets renamed |New indicator |9 | |3 |3 |3 |Report submitted Council | |OHASA issues | |% Assessment of the risks as per[4] |New indicator |100% | |100% | | |Council resolution | | | |% Implementation of the assessment report as part OHASA |New indicator |100% | | |100% | |Council resolution | |To support the development of an effective and efficient human resource management culture | |% Reduction of overtime costs in the department |New indicator |50% |10% |15% |15% |10% |Overtime cost report submitted to the Municipal Manager | | | |% Variance on operating budget | |0% |0% |0% |0% |0% |Audited Financial Statements submitted to Council | | | |% Update of the asset register wrt GRAP | |100% | | | |100% |Asset register submitted to Finance | | | |% Of department specific AG’s management letter addressed | |100% | | | |100% |AG’s Report | | | |% Spending on BEE (organisation-wide) | |70% | | | |70% |Audited Financial Statements submitted to Council | | | |% Of departmental spending skills development | |100% | | |100% | |Skills Development report submitted to the Municipal Manager | |
Social Services
Improving the quality of life of our communities is one of the key mandates of local government and a fundamental feature off developmental local governmental. Social services are one of the key instruments of local government to improve the quality life for our communities and bring about fundamental redress of the ills of the past. Social services should be seen as part of human development and restoration of human dignity. It is within this regard that the department of social development is developing strategies and interventions that seek to address social challenges such poverty.
The community services department is tasked to provide services to the communities through outreach support in the whole of the municipal area.
❑ Periodic organizational reviews which enable intervention mechanisms.
❑ Monitoring, evaluation and reporting on organisation performance with regard to community services.
❑ Conducting public participation forum meetings
❑ Monitoring public transport infrastructure usage
Strategic
Objectives |Budget |Key Performance Indicators |
Baseline |Annual Target |Quarter 1:
30 Sept. 08 |Quarter 2:
31 Dec. 08 |Quarter 3:
30 Mar. 09 |Quarter 4:
30 Jun.09 |Evidence | |To ensure facilitation and development of polices geared towards improving social development | |% Signing of SLA on fire fighting with Sekhukhune District municipality | |100% |100% | | | |Agreement signed by the Mayor and Municipal Manager | | | |No. Of Housing units delivered |14 |500 | | | |500 |Signed happy letters submitted to Council | | | |No. Of home based care programmes implemented | |4 |1 |1 |1 |1 |Report submitted to Municipal Manager | | | |No. Of indigent registered |518 |2000 |500 |500 |500 |500 |Indigent Council resolution | | | |No. Of indigent families benefiting from the food programme |500 |1000 |250 |250 |250 |250 |Indigent Council resolution | | | |No. Of informal sporting fields established in each village |15 |15 |5 |5 |5 | |Report submitted to the Municipal Manager | | | |No. Of indigenous games conducted |1 |1 | | |1 | |Report submitted to the Municipal Manager | |To maintain a state of readiness alert aimed at managing all potential disaster situations | |% Of municipal buildings with disaster management plans |40% |100% | |100% | | |Council resolution | | | |No. Of simulation exercises conducted in the main municipal building | |1 |1 | | | |Simulation report signed-off by the Municipal Manager | | | |No. Of possible fire hotspots/hazards identified |3 |4 |1 |1 |1 |1 |Report submitted to the Municipal Manager | | | |No. Of fire hazards awareness campaigns conducted |5 |5 |2 |2 |1 | |Report submitted to the Municipal Manager | | | |No. Of emergency life-skills programme conducted in Crèches | |4 |1 |1 |1 |1 |Report submitted to the Municipal Manager | |To promote compliance to municipal by-laws | |No. Of municipal by-law updated |2 |6 |2 |2 |2 | |Council resolution | | | |No. Of government buildings inspected |12 |12 |4 |4 |4 | |Council resolution | | | |No. Of government mortuaries and private funeral undertakers inspected |6 |8 |2 |2 |2 |2 |Report submitted to the Municipal Manager | | | |No. Of fines issued to owners of buildings for failure to comply to by-laws |1000 |500 |150 |150 |100 |100 |Council resolution | |To support the development of an effective and efficient human resource management culture | |% Variance on operating budget | |0% |0% |0% |0% |0% |Audited Financial Statements submitted to Council | | | |% Reduction of overtime costs in the department |New indicator |50% |10% |15% |15% |10% |Overtime cost report submitted to the Municipal Manager | | | |% Update of the asset register wrt GRAP | |100% | | | |100% |Asset register submitted to Municipal Manager | | | |% Of department specific AG’s management letter addressed | |100% | | | |100% |AG’s Report | | | |% Spending on BEE (organisation-wide) |70% |70% | | | |70% |Audited Financial Statements submitted to Council | | | |% Of departmental spending skills development | |100% | | |100% | |Skills Development report submitted to the Municipal Manager | |
4. Conclusion
The municipal’s SDBIP would be used to drive performance and be a focal point to hold municipal official accountability for the performance of the municipality. In addition, the SDBIPs would form the basis of quarterly progress reports that will be submitted to Council and other spheres of government.
The SDBIPs are the cornerstone of endeavours to modernise financial management in the municipality. They further a strong basis to allocate municipal resources and serve as a catalyst for budgeting.
14. DISCLOSURE ON IMPLEMENTATION OF MFMA
this section provides disclosure regarding progress in implementing various related legislation including the MFMA and how this affects the budget and budget process.
The Municipality does not have an MFMA steering committee, however, the Municipal Manager (Accounting Officer) plays a central role in ensuring that the Act is implemented and that all stakeholders comply with the provisions of the MFMA.
The organizational structure has been amended to provide for the post of Chief Financial Officer (previously Financial Director) to head the Budget and Treasury Office. The Chief Financial Officer post will be filled during the current financial year.
In regard to the 2008/09 budget process, the Municipality has ensured compliance with all the critical legislative deadlines and content requirements.
15. SUMMARY OF DETAILED CAPITAL PLAN
[pic]
[pic]
Notes and Highlights of Capital Budget
1. The reduction in the capital budget for 2008/09 and the two outer years is as a result of budgeting more realistically in accordance with Sec 18 of the MFMA.
2. The MIG allocation of R13,7 million for 2008/09 is especially allocated to the following projects relating to the upgrading of roads:
• Chego to Dikgalaopeng [Phase3]
• Ramogwerane [Phase 2]
• Thabakhubedu road surfacing
• Nyakurwane Road [Phase 2]
• Phucukane access road
3. An amount R2 million for identified land tenure and restitution projects.
4. The amount R23 million budgeted in 2008/09 financial year is still ongoing for the next two years for upgrading the sub-station in Groblersdal to ensure that the municipal supply can accommodate current and future energy demands.
5. The diagram below shows the different sources of funding for the capital programme over the next three years. It should be noted that there still exist some additional capacity from own funding to finance additional projects in year 2 and 3 of the capital budget.
[pic]
6. The next diagrams shows the breakdown of the capital expenditure per department.
[pic]
16. BUDGETED FINANCIAL STATEMENTS
TO BE INSERTED AFTER THE APPROVAL
OF THE FINAL BUDGET
[pic]
-----------------------
[1] The Director Strategic Management is responsible to facilitate performance improvement initiatives aimed at assisting individual departments who may not have met agreed targets. These initiatives would include plans to rectify performance gaps identified by municipal management and executive committee.
[2] The director will ensure that all managers participate in their sector specific IGR structures.
[3] Note that this a prescribed national key performance indicator (NKPI): Number of households earning less than R1100 based on the Indigent list plus the informal settlement estimate
[4] Section 16 of the Fire Brigade Services Act 99 of 1987; e.g. Fire signage (TT29), fire extinguishers unlocked (TT38), stoppers to be installed, all ventilated smoke and draught doors must be reinstated (TT45), etc
-----------------------
VISION
MISSION
KEY FOCUS AREAS
IDP PRIORITY ISSUES
Role clarification (Councillors and Administration)
Promote sound financial governance
Strategic approach to budgeting
Improved accountability and service delivery
Modernisation of financial management
Promoting corporative
and consultative governance
MFMA
Figure 1: The underlying principles of the MFMA
Figure 2: Measuring budget outcomes (via the SDBIP)
Approved Budget
SDBIP and Performance Agreements
Monthly
Budget Statements
Quarterly Performance Reports
Mid-year Budget
and Performance
Assessments
Annual
Report
Section 24 (1)
Council must approve the Budget and revised IDP at least 30 days before the start of the year
SDBIP must be submitted to the Mayor within 14 days and approved in 28 days
Includes service delivery targets and performance indicators
PA’s must ito MSA and linked to measurable objectives and SDBIP
Section 121 (3)
A municipality’s annual report must include an annual performance assessment by AO of performance against measurable objectives
Section 71 (g) (ii)
Not later than 10 workings days after the end of each month.
---------------------
An explanation on any variances from the SDBIP
Section 72 AO by 25 January each year assess both financial and service delivery performance, issues from Annual Report and performance of each municipality entity and submit a report on such.
Adjustments budget s54 (1) (c)
Section 52 (d)
The Mayor must within 30 days after the end of each quarter submit a report to Council on the implementation of the budget in accordance with the SDBIP
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